Tuesday, November 25, 2008

NY Post Editorial

Today's lead editorial in the NY Post lambastes the management at Citi for running the business into the ground...

Already gone, though not soon enough, is former Director Robert Rubin - the one board member who seems to have been wide awake the whole time. Rubin, the Clinton administration treasury secretary who successfully engineered the bank
deregulation that made so much of the current mess possible, was appointed to the Citi board in 1999. Then, it seems, things began to happen. That is,
Rubin apparently undertook to test the limits of his new banking rules.

In a 4,076-word autopsy of Citigroup's "rush to risk," The New York Times on Sunday labeled Rubin "an architect of the bank's strategy." It describes him as having "pushed to bulk up the bank's high-growth fixed-income trading," including risky debt instruments. Risky is hardly the word for it - though in mid-2007, according to the newspaper, Citi brass claimed that the likelihood of subprime mortgages actually defaulting "was so tiny that they [were] excluded from their risk analysis."
Robert Rubin is also a main economic advisor to President-Elect Zero. So, clearly, he has his hands in too many cookie jars...

Read the entire piece...

No comments:

Post a Comment